Professional Documents
Culture Documents
Policy Goal
i
DRAFT GREEN PAPER ON THE MINES & MINERALS POLICY FOR UGANDA
Directorate of Geological Survey and Mines, Plot 21 - 29, Johnstone Road
P.O. Box 9, Entebbe / Uganda; Tel: +256 414 323432, +256 414 320118; Fax +256 414 320364;
E-Mail: dgsm@minerals.go.ug
GEOLOGY AND MINERAL OCCURENCE MAP OF UGANDA
Uganda has good potential for minerals with favourable geological environment for
world class economic mineral deposits. Discoveries of copper, nickel, gold, chromite,
iron ores, tin, tantalite, tungsten, limestone, marble, graphite and gemstones have since
been made. Other resources such as sand, clay and rock mining have also become
significant in the face of economic growth. These resources have attracted increased
Foreign Direct Investment (FDI) in the sub-sector from US$5 million in 2003 to over US$
800 million in 2017.
Similarly revenues from license fees and royalties increased from US$0.5 million in 2003
to US$14.6 million in 2011 then back to US$2.06 million by the end of FY 2014/15 due
to global decline in mining industry. Currently, the sector contributes 0.3% percent to
Gross Domestic Product (GDP) per annum compared to the annual sub-sector growth
of 10.9%. This is expected to increase to seven percent (7%) by 2020 according to the
National Development Plan (NDP) II (2015-2020) and Vision 2040 towards achievement
of the Middle income status.
However, the Mineral Sub-Sector has continued to face challenges of low funding;
institutional capacity to manage the mineral resources; value addition to minerals;
complex nature of artisanal and small scale mining; conflicts and environmental
degradation.
The development of this Policy was done in consultation with the Uganda Chamber of
Mines and Petroleum, mining companies, academic and research institutions,
development partners, members of Parliament on Natural Resources Committee,
relevant Ministries, Departments and Agencies (MDAs), Civil Society Organizations
(CSOs) and the general public.
pg. i
The new Mining and Mineral Policy will provide directions and strategies for managing
the exploitation of the country’s mineral resources and will pave way for a more
progressive and comprehensive Mining Legislation. Existing institutions will be
strengthened and new ones created to undertake specific tasks.
Finally, I wish to thank the various Government Ministries, Departments and Agencies,
the private sector, the members of the Inter-Ministerial Committee and the all those who
contributed and prepared this Policy. I am confident that this Policy will leverage
Ugandas’ mining industry to benefit all Ugandans.
pg. ii
The Minerals sub-sector has over the years registered tremendous progress and
investment attractiveness as a result of the implementation of the Mineral Policy of
Uganda 2001. This performance notwithstanding, the sub-sector has faced challenges
largely due to its dynamic nature which has rendered the Mining Policy of Uganda
(2001), inadequate, thereby undermining its optimal contribution to social economic
development, of the country, hence, need for its revision to bring it in tandem with the
emerging issues.
The justification for the new policy is therefore to promote regulation of substances
excluded from the definition of the word “mineral” in Article 244 of the Constitution,
promote use of appropriate technology with the least impacts to the environment,
provide for a transparent and accountable licensing regime, comprehensively evaluate
the country's mineral potential, increase investment and revenue generation in the
Mining sub-sector, promote infrastructure development in the mining sector, provide for
traceability of conflict minerals, promote in-country value addition, ensure equity in the
mining sector and safeguard the provision of affordable inputs for rural agro-processing
industries such as phosphate fertilizers.
The policy will also strengthen the institutional framework and address governance and
operational issues, environmental protection, gender and equity, mineral value addition,
mine closure and post-mining transition as well as, formalizing artisanal and small scale
mining.
Above all, this policy will address gaps that have existed in the Mining sub-sector and
more importantly, form a basis for review of the Mining Act of 2003, as well as, aligning
the industry’s strategic direction with the Constitution of the Republic of Uganda 1995
(as Amended in 2005), African Mining Vision 2009, the National Development Strategy
under the National Development Plan II (NDPII 2015/16 -2019/20) and Uganda Vision
2040;
pg. iii
The Mining and Minerals Policy for Uganda, 2018 goal is to develop the mining industry
through increased investment, value addition, national participation and revenue
generation to contribute significantly to substantial socio-economic transformation and
poverty eradication. The Policy contains guiding principles, objectives and strategies for
the sustainable development of Uganda’s mineral resources. The Policy is divided into
seven separate Chapters.
An overview of the broader economy, national goals and objectives are provided in the
introduction. The Policy builds on important commitments and initiatives of the
Government including addressing the strategic bottlenecks that have constrained
Uganda’s socio-economic development since her independence, such as, weak private
sector, underdeveloped human resources, inadequate infrastructure, small market, lack of
industrialization and underdeveloped services sector. In light of the foregoing, the Policy
has ten objectives and enunciates twelve principles for sustainable development-based
decision-making, including pursuance of several strategic, long-term directions.
The Government recognizes that the mining industry faces some of the most difficult
challenges of any manufacturing sector. Based on the many expectations of the industry’s
potential contributions: The Government expects that the development of minerals will be
an engine of sustained economic growth; Local communities expect that the industry will
provide employment, infrastructure, and different advantages that counter the dangers and
impacts they experience and will leave them better off than when the project started; the
industry’s personnel expect safer and healthier working conditions, improved livelihoods,
and consideration when their employment ends; Local citizens and human rights activists
expect companies to prevent and address the risk of adverse impacts on human
rights linked to business activity; Civil Society Organizations (CSOs) expect government
and companies to commit to better practices and stronger regulations to protect the
environment and communities from industrial pollution; Investors expect higher returns on
investment and financially healthy projects; and Consumers count on secure products
produced in a manner that meets appropriate environmental and social standards.
Against this background, the Government of Uganda, through the Ministry of Energy and
Mineral Development, appointed a Task Force to steer the Mining and Mineral Policy and
legislative review process for the country. Therefore, this Policy is a product of
consultations with a wide range of mineral sector and mining industry stakeholders. On the
basis of several identified main issues, respective solutions have been formulated to
address the various most important constraints, which affect and hamper mineral sector
development.
pg. iv
Draft Mining & Mineral Policy for Uganda 2018
and social development; ensure provision of clean water and sanitation; responsibly manage
significant and broad landscape impacts; ensure sustainable access to energy and minimize
emissions in both the production and downstream uses of its products; provide decent work
and economic growth; deliver Infrastructure, Innovation, and Industrialization; and establish
Peace, Justice and Strong Institutions.
This Policy seeks to provide an overall conducive environment that enables maximizing
mining’s contribution to sustainable development in Uganda. It defines clearly the
responsibilities, accountability of sector organizations and institutions and linkages to
national development plan. It also promotes generation and access to geological
information; review and update of mining codes, regulations and standards; and proper
licensing or permitting process that includes, for example: consultations with communities,
integrated economic and ESI Assessments, identifying risks, impacts, opportunities -
mitigation or management plans (including social investments), closure plans and full
transparency of process.
The Ministry of Energy and Mineral Development is the Lead Agency responsible for
mineral development. This Ministry will enhance its institutional capacity in order to
coordinate and implement the new Mining and Mineral Policy, and it will also revise the
Mining Act of 2003, and related regulations applicable to the Mineral Sector, to account
for changes that have occurred in this sector to date, and to reflect the new Policy. The
Ministry will work closely with other ministries and agencies, private sector and stakeholders
in the implementation of this policy.
Key milestones that this policy shall achieve include: create new institutions to enhance
the effective governance of the mining sector; provide adequate funding to sector;
promoting the competitiveness of the Ugandan Mining Industry; providing a
comprehensive geoscience information infrastructure; optimizing linkages into the local
economy; promoting efficient Benefit Sharing in the Mining Industry; regional and
international cooperation on trans-boundary mineral resources; promote efficient
management of Artisanal and Small-scale Mining; promote value addition of strategic
minerals; regulating Commercial Exploitation of Building Minerals; restrict blasting of rocks
that are connected to ecological system and those with historical relevance; promote
environmental management; ensure observance of social issues in the mining sector and
enhancing the health and safety of Ugandans operating in the mining sector.
pg. v
Draft Mining & Mineral Policy for Uganda 2018
TABLE OF CONTENTS
Contents
GEOLOGY AND MINERAL OCCURENCE MAP OF UGANDA ............................................. 2
FOREWORD................................................................................................................................. I
PREAMBLE..................................................................................................................................III
EXECUTIVE SUMMARY ........................................................................................................... IV
TABLE OF CONTENTS ............................................................................................................. VI
LIST OFABBREVIATIONS AND ACRONYMS ...................................................................... VIII
GLOSSARY OF TERMS ..........................................................................................................x
CHAPTER 1 ................................................................................................................................11
1.0 INTRODUCTION..............................................................................................................11
1.1 Background ...................................................................................................................11
1.2 Policy Context ...............................................................................................................13
1.3 Uganda’s Mineral Resource Endowment...................................................................13
1.4 Situational Analysis ......................................................................................................14
1.5 Problem statement .......................................................................................................17
1.6 Policy Justification and Rationale ...............................................................................18
1.7 Policy outcomes............................................................................................................18
CHAPTER 2 ................................................................................................................................19
2.0 VISION, MISSION, GOALS, OBJECTIVES AND GUIDING PRINCIPLES................19
2.1 Policy Vision..................................................................................................................19
2.2 Policy Mission ...............................................................................................................19
2.3 Policy Goal ....................................................................................................................20
2.4 Policy Objectives ..........................................................................................................20
2.5 Guiding Principles.........................................................................................................20
CHAPTER 3 ................................................................................................................................23
3.0 POLICY PRIORITY AREAS AND STRATEGIC INTERVENTIONS .................. ERROR!
BOOKMARK NOT DEFINED.
3.1 Policy priority Areas.......................................................... Error! Bookmark not defined.
3.2 Strategic interventions...................................................... Error! Bookmark not defined.
CHAPTER 4 ................................................................................................................................27
4.0 CROSS CUTTING ISSUES ............................................................................................27
4.1 Environment, Social, health and Safety management..............................................28
4.2 Access to Land .............................................................................................................28
4.3 Gender, Equity and Child Labour................................................................................29
4.4 Climate Change ............................................................................................................29
CHAPTER 5 ................................................................................................................................29
pg. vi
Draft Mining & Mineral Policy for Uganda 2018
5.0 LINKAGES TO EXISTING POLICY AND LEGAL FRAMEWORKS............................29
5.1 International, Continental and Regional Dispensations ............................................30
5.2 National Policies, Legal and Regulatory Frameworks ..............................................30
CHAPTER 6 ................................................................................................................................32
6.0 IMPLEMENTAION ARRANGEMENTS ..........................................................................32
6.1 Inter-sectoral coordination committee ........................................................................32
6.2 Institutional Mechanisms/Arrangements.....................................................................32
Mineral Exploration Unit ....................................................................................................................................33
Licensing /Mining Cadastre Unit .....................................................................................................................33
Mineral Audit Agency .........................................................................................................................................33
Mining Tribunal ....................................................................................................................................................33
6.3 Specific roles of key Government institutions ............................................................34
6.4 Roles of Key Government Agencies...........................................................................40
6.5 The Role of Local Governments .................................................................................42
6.6 The Role of Private Sector...........................................................................................43
6.7 The role of Uganda Chamber of Mines and Petroleum ............................................44
6.8 The Role of Civil Society and Cultural Institutions ....................................................44
CHAPTER 7 ................................................................................................................................45
7.0 MONITORING AND EVALUATION FRAMEWORK......................................................45
7.1 Introduction....................................................................................................................45
7.2 Policy Implementation Plan .........................................................................................45
7.3 Human Resources Development ................................................................................45
7.4 Institutional Capacity ....................................................................................................46
CHAPTER 8 ................................................................................................................................48
8.0 COMMUNICATION STRATEGY ....................................................................................48
8.1 Information Dissemination and Awareness Creation ................................................48
8.2 Communication and Feedback Mechanisms.............................................................48
CHAPTER 9 ................................................................................................................................49
9.0 FINANCING OF THE POLICY........................................................................................49
9.1 Introduction....................................................................................................................49
9.2 Financing the Institutional Framework........................................................................49
9.3 Financing the Regulatory Framework.........................................................................50
9.4 Financing Infrastructure ...............................................................................................50
9.5 Monitoring, Review and Evaluation ............................................................................51
APPENDIX I: MINING AND MINERAL POLICY DEVELOPMENT COMMITTEE .........51
APPENDIX II: POLICY IMPLEMENTATION PLAN...............................................................53
pg. vii
Draft Mining & Mineral Policy for Uganda 2018
LIST OFABBREVIATIONS AND ACRONYMS
pg. viii
Draft Mining & Mineral Policy for Uganda 2018
NPV Net Present Value
OECD Organization for Economic Co-operation and Development
OHS Occupational Health and Safety
PEAP Poverty Eradication Action Plan
PGE Platinum Group of Elements
PMA Plan for Modernization of Agriculture
PPP Public Private Partnership
PWYP Publish What You Pay
RBP Regulatory Best Practice
REE Rare Earth Elements
SEA Strategic Environmental Assessment
SIA Social Impact Assessment
SMMRP Sustainable Management of Mineral Resources project
UNECA United Nations Economic Commission for Africa
UNEP United Nations Environment Programme
UPF Uganda Police Force
URA Uganda Revenue Authority
UWA Uganda Wildlife Authority
pg. ix
Draft Mining & Mineral Policy for Uganda 2018
GLOSSARY OF TERMS
Artisanal and Small-scale In this Policy context, ASM refers to mining operations run by
Mining (ASM) individuals, families or groups of local communities or migrant
workers or local enterprises, the majority of whom have no formal
technical training and depend on rudimentary tools. The Ugandan
mining legislation does not provide a direct definition of “artisanal”
mining; only “small-scale” mining has been defined in the Mining Act,
2003, its operations characterized by small capital investment, low
levels of technological sophistication, and at least 51% ownership by
Ugandan citizens.
Building Mineral rock, clay, gravel, laterite, murram, sand, sandstone and slate, which is
mined by a person from land owned or lawfully occupied by him or her
for his or her own domestic use in Uganda for building, or mined by a
person for his or her own use for road-making, and Includes such other
minerals as the Minister may from time to time declare by notice
published in the Gazette, to be building minerals
Buying and processing a company that purchases mineral ore, most often but not exclusively
centre from artisanal producers, processes mineral ore or mineral concentrate
and exports mineral ore or mineral concentrate to customers outside of
the country
Buying center a company that purchases mineral ore, most often but not exclusively
from artisanal producers and exports mineral ore to customers outside
of the country
Neglected Development due to their low price as a function of their weight and their relatively low
Minerals OR Low value to international commodity markets, these natural resources
Value Minerals and provide crucial inputs for domestic economic development
Materials (LVMM) (infrastructure, manufacturing, construction and agriculture to name a
few) and have the potential to boost development through employment
creation at the
local level for millions people.
Policy Context The ideas surrounding this Policy. These include: Legal and Policy
Environment - policies, laws, regulations and guidelines, institutional
capacity, monitoring and enforcement; Financial benefit maximization
- Revenue Generation (Taxation and Royalties), Mining Policy
Considerations; Socio-economic benefit maximization - Integration of
Community, Regional and National Issues, Education, Community
health, Occupational health and safety, Employment, Business
development, Security, Human rights, indigenous peoples and cultural
heritage; Environmental Management –Water, Biodiversity, Mining
wastes, and Emergency planning and preparations; Post-mining
Transition - Mine closure, Financial assurances, and Orphaned and
abandoned mines; Artisanal and Small‐scale Mining (ASM) -
Integrating ASM into the legal system, Integrating ASM into the formal
economic
system, and Reducing social and environmental impacts.
pg. x
Draft Mining & Mineral Policy for Uganda 2018
Chapter 1
1.0 INTRODUCTION
Uganda is endowed with favourable geological environments that host a wide range
and variety of mineral deposits including: gold, asbestos, graphite granite, mica,
dimension stones, construction materials, copper, lead, zinc, cobalt, nickel, iron ore
(haematite), tin, tungsten, beryl, columbite, tantalite, lithium, bismuth, kyanite, kaolin
with potential for nickel and Platinum Group of Elements (PGE), chromites, magnetite,
tantalite, nickel, platinum, copper, zinc, niobium (pyrochlore), vanadium, baddeleyite
(zirconium oxide mineral), Rare Earth Elements (REE), radioactive elements (uranium,
thorium), marble /limestone, diopside (garnet marble), apatite, asbestos, graphite,
musovite, talc, serpentinite, gemstone, salt and gypsum including bentonite and
diatomite clays; iron (magnetite), niobium, base metals, phosphates and vermiculite.
This is an indication of the country’s mineral resource potential with estimates of about
80% of the land cover endowed with rare earth minerals thus providing opportunity to
develop a strong mining industry. Government will continuously carry out geological
exploratios in the various parts of the country to assess the viability of the various
mineral potentials. Uganda has the opportunity to build a strong mining industry that
will be a source of revenue, employment, and economic lifeline industries since
government expects to pursue mineral exploration further to unlock new discoveries.
This mineral policy therefore is meant to strengthen government efforts in the mineral
subsector to unlock mineral potential for effective and efficient management of the
subsector and to enable the country obtain maximum benefits from its mineral deposits
to spur social economic development/ transformation of Uganda. The Policy
comprehensively addresses the gaps that have existed in the mineral subsector and
acts as a spring board for reviewing the subsector’s obsolete legal and regulatory
framework.
In addition the policy aligns the subsector with the Constitution Amendment of Article
244 in 2005, the vision 2040 and NDP II as well as regional and international
frameworks e.g. African Union Mining Vision (2009) and also consolidates the
achievements of the Mineral Policy of Uganda 2001 which provided a balanced policy
framework which attracted investment in exploration and mining and boosted mineral
trade in Uganda as indicated by the subsector’s annual growth of 19.4% in Financial
Year (FY) 2006/07.
1.1 Background
Mining in Uganda dates back to the pre-colonial era. Most traditional communities used
to mine, process and smelt mineral ore. The common minerals mined, processed and
smelted were iron ore, kaolin and clay. For instance, iron ore was processed from
haematite and laterite (consisting of iron, aluminium and silicate). Other minerals
included clay; iron, aluminium and silicate rich clays and others) and kaolin and shale;
consisting of aluminium and silicate clays. The traditional smelting of iron ore from iron
ore and laterite was done by smelting (pumping air) through a hole to a fire place where
iron ore was put. Today this can be seen by slag in some places.
pg. 11
Draft Mining & Mineral Policy for Uganda 2018
The airborne geophysical survey, geological mapping and geochemical sampling
estimates over 27 types of minerals in significant commercial viable reserves. For
example Iron ore deposits in Kabale and Kisoro areas are estimated to be over 300
million tonnes. Other minerals include; Beryl, Bismuth, Columbite Tantalite, Copper,
Chromite, Diamond, Gold, Tin (cassiterite), Wolfram(Tungsten), Asbestos, Clay, Rare
Earth Elements, Aluminous Clays, Diatomite, feldspar, Granite Gneiss, Graphite,
Gypsum, Kaolin, Kyanite, Limestone, Marble, Mica, Phosphates, Rock Salt, Silica
Sand, Building Sand, Talc, Cobalt, Lead, Zinc, Platinum Group Metals (PGM),
Uranium, Vermiculite and Nickel among others (NPA, 2010).
The country has witnessed massive growth of the subsector stranding at an average
of 19.4 % under the guidance of the 2001 and 2003 policy and legal frameworks. As a
result there has been observed increase in investment in the subsector, new mines
coming on-stream, growing mineral discoveries, as well as increase in mineral trade
especially in gold, iron. The sector therefore, presents strong potential to generate
substantial revenue and employment and provide more visible economic benefits to
the country (up to 5% GDP) and improved livelihood for the population.
The latest detailed geological, geochemical and airborne geophysical data covering
80% of the country led to the discovery of a total of eighteen (18) new mineral targets;
ten (10) new uranium priority anomalies; 300 million tonnes of proven iron ore deposits
in the country (with inferred reserves of up to a billion tonnes); increase in Vermiculite
reserves from 5 million tonnes to 54.9 million tonnes; increase in Limestone and
marble reserves from 30 million tonnes to more than 500 million tonnes; 7.8 million
ounces of gold in Busia, Kamalenge, Mashonga, Kampano and Alupe; 1.7 billion
tonnes of graphite Orom, Kitgum, 3 billion tonnes of aluminous clay rich in Rare Earth
Elements (REE) in Makuutu, Iganga; 230Mt of Phosphate and Iron for the Sukulu
phosphates and steel project which is under development.
Foreign Direct Investment (FDI) in the mineral sector increased from US$5 million in
2003 to an estimated US$ 800 million in FY 2016/17. Similarly, revenues from license
fees and royalties increased from US$0.5 million in 2003 to US$ 4.14 million in
2016/17, mineral rights (licenses) issued, increased dramatically over the same period
from 100 mineral licenses in 2003 to over 818 by the end of FY 2016/17.
Development of the mineral subsector therefore remains a pertinent aspect for the
integrated development of Uganda. The subsector has great potential to contribute to
achieving high economic growth rates envisioned In the Uganda Vision 2040, which
projects that the industry will be a major driver in employment creation and GDP growth
through the subsectors forward and backward linkages that will be a source of
revenue, employment, and economic lifeline industries. Eg Steel which is processed
from iron ore is a significant input to the manufacturing, construction and infrastructure
development. Uranium on the other hand is used to facilitate generation of electricity
pg. 12
Draft Mining & Mineral Policy for Uganda 2018
from nuclear energy; whereas Phosphates are used for producing fertilizers to support
agriculture production. In addition, the rare earth minerals are a strong input to the
manufacturing of IT and electronic products.
The review of the Mineral Policy of Uganda, 2001 has thus been influenced by a
number of important developments: international best practices existing in other
jurisdictions with mineral wealth; updated geological information; the National
Development Plan II (NDPII); the Uganda Vision 2040 and the constitutional
amendment of 2005, as well as the need for the Policy to reflect recent regional and
global developments in the governance of the mining industry.
The policy is developed to address the following issues: legal and regulatory
framework, management of ASM, effective environmental management, health and
safety, financing, market, value addition, institutional capacity, emerging issues,
effective development of the mining industry, improving the investment climate,
improved governance in the mining industry that calls for expedited review and
development of policies and legislation relating to mineral development in Uganda,
strategies that maximize social and economic benefits without compromising
environmental sustainability for the benefit of present and future generations,
harmonizing national and regional policies and strategies related to the development
and exploitation of mineral resources, regulating the commercial exploitation of low
value minerals.
Information from geological investigations carried out over a period of more than
ninety-five years and available mineral production statistics, demonstrate that
Uganda is endowed with favourable geological conditions associated with a rich
and diverse mineral resource base and with substantial economic potential.
Uganda is underlain by extensive Precambrian (4,500 – 600 million years) rocks, which
are host to a wide variety of mineral deposits. Younger Cenozoic (65 million years –
Present) sediments and volcanics in the west and east of the country are also host to
mineral deposits.
The previous and recent geological mapping and exploration studies show that the
mineralization in Uganda falls into the following tectono-thermal domains or building
blocks:
(i) The Archaean basement of Uganda (≈ 3,200 - 2,500 million years) hosts gold,
asbestos, graphite granite, mica, dimension stones and construction materials.
pg. 13
Draft Mining & Mineral Policy for Uganda 2018
(ii) The Palaeoproterozoic rocks (≈ 2,100 - 1,780 million years) hosts base
metals such as copper, lead, zinc, cobalt, nickel and gold.
(iii) The Mesoproterozoic rocks (≈ 1,550 - 950 million years) host of iron ore
(haematite), tin, tungsten, beryl, columbite, tantalite, lithium, bismuth, kyanite,
kaolin and have potential for nickel and Platinum Group of Elements (PGE).
(iv) The Neoproterozoic rocks (≈ 900 - 550 million years) host both metallic and
industrial minerals including gold, chromites, magnetite, tantalite, nickel, platinum,
copper, zinc, niobium (pyrochlore), vanadium, baddeleyite (zirconium oxide
mineral), Rare Earth Elements (REE), radioactive elements (uranium, thorium),
marble /limestone, diopside (garnet marble), apatite, asbestos, graphite, musovite,
talc, serpentinite, and a variety of gemstones.
(v) The Phanerozoic rocks (≈ 540 - 18 million years) host a number of evaporites
such as salt and gypsum; bentonite and diatomite clays; iron (magnetite), niobium,
Rare Earth Elements, uranium, base metals, phosphates and vermiculite.
The processing and interpretation of the airborne geophysical data (magnetics and
radiometrics) between 2006 - 2008 identified ten (10) targets for possible uranium
mineralization zones in Arua, Pakwach, Hoima, Fortportal West, Mbarara west,
Mbarara East, Kabale, Kitgum West, Kitgum East and Masindi West.
However, a large part of Uganda remains geologically under-explored and the mineral
potential of this area is yet to be evaluated.
pg. 14
Draft Mining & Mineral Policy for Uganda 2018
issues and challenges:
Inadequate and outdated Policy, Legal and Regulatory Framework; the current legal
and regulatory framework lacks alignment to the national development frameworks as
well as the constitutional amendment provisions. This therefore makes the frameworks
outdated, inadequate, ineffective and inefficient; an indication that the subsector is
guided by archaic frameworks which are not aligned to the national aspirations and
constitution. Some of the challenges include weak institutions, inadequate monitoring
and compliance, feeble enforcement and insufficient dispute resolution mechanisms.
Eg the Mining Act (2003) does not in its jurisdiction cover several minerals that are
mined and quarried on commercial basis, a contemporary development which if
considered may raise the subsectors contribution to GDP to 5%, it also limits
governance in terms of procedure for licensing and supervision, leading to cases of
speculation and assumption of discretionary powers to the Commissioner..
Inadequate funding: The minerals subsector, despite its potential to improving the
livelihoods of Ugandans has mainly been funded by development partners and private
investors with government taking limited role mainly in exploration. As such there has
been lack of comprehensive geological data, inadequate modern equipment, modern
infrastructure, insufficient skilled man-power, and low capacity to inspect and monitor
mining operations, low attraction and retention of technical expertise. This has limited
optimal development of the subsector discoveries as well as investment attraction.
In addition the limited initiatives in the areas of branding, promotion and marketing of
Uganda’s mineral potential locally, regionally and internationally has limited the level
of investment in the sector. E.g. since the formulation of the Mineral Policy of Uganda,
2001, there has been no deliberate facilitation of marketing and promotion of mineral
trade including access to market information, buying centres, promotions, exhibitions
and mineral auctions.
Conflicts arising from competing land uses: mineral resource deposits are located
in, on or under the earth surface(land). As such access to land for exploration and
mining is a key aspect in the face of increasing demand for land. There is often dispute
arising from access to land, a phenomenon that affects effective exploration,
investment and mineral development. There is need for a clear government strategy
to provide easy access and acquisition of land for mining projects.
pg. 15
Draft Mining & Mineral Policy for Uganda 2018
of derelict lands and orderly post-mine closure greatly affects the environment hence
its degradation. There is need therefore, to harmonize and align the regulatory policies
and practices in the country’s mining sector with existing environmental legislation.
The large informal Artisanal and Small-scale Mining (ASM) Sub- sector: Artisanal
and Small Scale Mining (ASM) has become a major player in the mining subsector
employing a large number of people in many areas of the country, mainly in panning
for gold, gemstone mining. , Although ASM is an income generating activity benefiting
low income and vulnerable groups the nature of their operations remain largely
informal and illegal, characterized with smuggling, tax evasion, health and safety
risks, socio-cultural dislocations, conflict among the mineral operators, loss of revenue,
environmental degradation and a variety of illicit activities. This is attributed to
difficulties in obtaining permits as well as inadequacies of the regulatory frameworks.
Therefore, effective regulation and management of ASM becomes a pertinent issues
for sustainable mineral development and wealth distribution.
Human rights, Gender and child labour issues: Exploitation of minerals has often
involved women and children in large numbers. This is mainly observed in ASM
subsector where these groups of people get heavily involved in the extractive activities.
However, the industry does not recognize the salient issues affecting women hence
put them at a disadvantage I terms of access to, and control over resources, productive
assets, access to information technology participation in decision making processes
and limited knowledge of mining enterprise developments. In addition development
programs directed at transforming the subsector often tend not to consider them. This
subjects them to risk i.e. both economic and physical and also exposes them to harmful
materials. the subsector is also characterized with child labour which calls for
enforcement of laws to curd the unlawful practice which often amounts to human rights
violations in addition to loss of land rights and livelihoods, destruction of heritage,
historical and cultural sites, right to life among others,
pg. 16
Draft Mining & Mineral Policy for Uganda 2018
Organisation (CTBTO) among others, there is still low commitment in domesticating
and implementing these instruments applicable to the mining industry.
Mineral Value Addition: mineral ores in Uganda have been largely exported
unprocessed depriving the country of employment and revenue. There is need for a
strategy that governs mineral processing and beneficiation.
Government approved the Mineral Policy of Uganda in 2001 with a goal of ensuring
sustainable national, economic and social growth of the country. Key strategic areas
in the Policy included: stimulating investment in the mineral sector, ensuring that
mineral wealth supports national and social development; regularize and improve
Artisanal and Small Scale Mining (ASM); minimize and mitigate adverse social and
economic impacts; strengthen local capacity for mineral development; improve mineral
value addition and optimize the mineral trade.
However, the Policy has since become obsolete and not strategically positioned to
address new and emerging issues which are both policy and legal, arising from the
dynamic nature of the sub-sector such as:
Amendment of Article 244 of the Constitution in 2005, which preceded the
Mining Policy 2001, the Mining Act 2003 and the Mining Regulations 2004. As
a result, the frameworks are not in tandem with the Constitution, to fully support
regulation and development of the mining subsector.
The need to regulate commercial exploitation of substances such as sand,
stone, clay and murram, excluded from the definition of the word “mineral” in
Article 244(5) of the Constitution. The exclusion has led to limited revenue
generation from this category of minerals to support socio-economic
development. These minerals if regulated can contribute over 3% to GDP
(Baseline Assessment of Development Minerals in Uganda, 2018).
pg. 17
Draft Mining & Mineral Policy for Uganda 2018
The current legal framework encourages extensive speculation and confers a
lot of discretionary powers and unclear guidelines to the Commissioner which
has often resulted into unnecessary litigations;
ASM has remained largely unregulated and its contribution not accounted for,
partly explaining the less than 1% contribution of the sector to GDP. From the
current illegal mining in Mubende, Buhweju, Busia, Namayingo, Nakapiripirit,
Amudat, Kaabong, Abim and Moroto Districts, its estimated that about 200 kgs
of gold equivalent to USD 8m (current price of USD 40,000 per Kg), is being
illegally mined per month (Baseline Assessment of Development Minerals in
Uganda, 2018) compared to Non Tax revenue (NTR) of USD 3.2m collected
annually;
The need to promote in-country value addition of strategic minerals such as iron
ore, base metals, precious metals and battery minerals;
The need to restrict any investor from blasting rocks that are connected to the
ecological system and those with historical significance;
The ambiguity surrounding the regulation, certification and traceability of
regional conflict minerals such as Tin, Tungsten, Tantalite and Gold.
The inadequate institutional capacity to administer the subsector to enhance
optimal resource exploration and development thus need to restructure the sub-
sector.
The country’s mining sector has been operating under the Mineral Policy of Uganda
2001 which has largely achieved most of its objectives and registered interest and
growth in the sector. However, the emerging trends in the global mining industry, the
anticipated opportunities and challenges in the sector and other gaps in the Policy,
Legal and Regulatory regime have rendered the Policy ineffective. There is therefore
need for a comprehensive and robust policy framework to provide a clear guidance for
sustainable mineral resources development.
The policy will address gaps that have existed in the mining sector, form the basis for
review of the Mining Act of 2003 and align the industry’s strategic direction with the
Constitution of the Republic of Uganda 1995 (as Amended in 2005), African Mining
Vision 2009, the National Development Strategy under the National Development Plan
II (NDPII) and Uganda Vision 2040. In addition, the Policy will strengthen institutional
framework and address governance and operational issues, environmental protection,
gender and equity, mineral value addition, mine closure and post-mining transition and
formalise artisanal and small scale mining. In addition, the Policy will promote
regulation of substances excluded from the definition of the word “mineral” in Article
244 of the Constitution, promote use of appropriate technology with the least impacts
to the environment, provide for a transparent and accountable licensing regime,
comprehensively evaluate the country's mineral potential and increase investment and
revenue generation in the mining sector.
The anticipated outcomes for this Policy are: a vibrant, investment-friendly and robust
mining industry leading to:
pg. 18
Draft Mining & Mineral Policy for Uganda 2018
i. Increased subsector contribution to GDP;
Chapter 2
pg. 19
Draft Mining & Mineral Policy for Uganda 2018
environmentally responsible mining industry to aid the socio economic
development and transformation of Uganda. Ensure development of the
mining industry through increased investment attractiveness, value addition,
national participation and improved technology transfer and applications and
institutional efficiency and effectiveness.
The mining and mineral policy is underpinned by the following guiding principles of the
Policy:
Strengthening the legal and regulatory framework for the mining industry.
Providing a strong robust legal framework for minerals subsector through legal and
regulatory framework that enhances transparency, predictability, minimum discretion
and security of tenure.
pg. 20
Draft Mining & Mineral Policy for Uganda 2018
Promote transparency, accountability and public participation in management
of mineral revenues for improvement of livelihoods, creation of jobs, effective
technology transfer and generation of significant income for sustainable
development of the country.
Support formalization and regulation of ASM. Artisanal and Small Scale Mining
(ASM) industry play a significant role both as a direct source of employment in mining
communities and in generating additional jobs and revenues in the rural economy.
Nevertheless the industry is largely informal, characterised by existence of archaic
rudimentary technology, in descent work environment, illicit activities among others,
which limit realization of optimal benefits from mineral wealth and poverty reduction in the
mining communities.
Promote Mineral value addition and development through horizontal and vertical
linkages for transformation of the economy as envisioned in the vision 2040 of Uganda.
Eg Steel which is processed from iron ore is a significant input to the manufacturing,
construction and infrastructure development. Uranium on the other hand is used to
facilitate generation of electricity from nuclear energy; whereas Phosphates are used
for producing fertilizers to support agriculture production. In addition, the rare earth
minerals are a strong input to the manufacturing of IT and electronic products
Enhance local and national participation. The Government recognizes that the
mining industry not only creates mining jobs but also generates employment indirectly
by stimulating demand for goods and services. In addition, the mining industry creates
the need for technical education and specialised skills development. The educated,
trained and experienced workers from mine and mine support activities become a
pg. 21
Draft Mining & Mineral Policy for Uganda 2018
national resource beyond the life of the mine. Government participation in the mining
industry is expected to regulate the behavior of private companies and optimize
Government take from mining proceeds.
pg. 22
Draft Mining & Mineral Policy for Uganda 2018
Chapter 3
Key Actions:
pg. 23
Draft Mining & Mineral Policy for Uganda 2018
Key Actions:
Strategy 4: Strengthen and Build Institutional and Human Capacity for effective and
efficient governance and management of Mineral subsector.
Key Actions:
i. provide adequate funding and equipment to DGSM to efficiently carry out its
mandate;
ii. provide capacity building and skills development of government officials and
stakeholders in the mineral sector;
iii. separate DGSM administrative functions of licensing from inspection and
monitoring of compliance;
pg. 24
Draft Mining & Mineral Policy for Uganda 2018
iv. permit the DGSM to retain at source some of the funds generated from
mineral exploration and mining activities to strengthen the exploration,
regulation, monitoring and inspection functions of the DGSM;
v. promote inter-agency collaboration and linkages;
vi. provide adequate remuneration and incentives to motivate and retain staff
responsible for mining industry promotion and management;
vii. establish and strengthen earthquake, landslides and other geohazard
monitoring systems;
viii. establish and equip institutions for quality vocational training and
postgraduate qualification apprenticeships;
ix. enact a law regulating geoscientists and its associate professionals; as well
as set up a professional registration body for geoscientists in Uganda; and
x. establish a unit in DGSM to coordinate and promote research and
development.
Key Actions
i. establish a framework for licensing, regulation and monitoring of ASM
activities;
ii. register and encourage ASM to form associations for their operations;
iii. map and demarcate areas for ASM;
iv. ensure that artisanal mining is a preserve for Ugandan citizens and
encourage joint ventures for small-scale mining operations;
v. provide extension services and technical assistance to ASM and other mining
communities in adopting safe, environmentally and socially acceptable
mining and processing practices.
vi. establish buying centres for mineral commodities for ASM and encourage
them to participate in supply chain initiatives;
vii. promote technological transfer and use of appropriate equipment.
viii. establish mechanisms for ASM to access financing; and
ix. collaborate with development partners and civil society to promote best
practices in the ASM subsector.
Key Actions:
pg. 25
Draft Mining & Mineral Policy for Uganda 2018
iv. create health, safety, HIV/AIDS and environmental awareness and train on best
practices;
v. put in place a mechanism for addressing environmental and social grievances,
disputes and conflicts arising from exploration and mining operations.
Objective 7: Protect and uphold gender, equity and human rights in the mineral
industry.
Key Actions:
Key Actions:
pg. 26
Draft Mining & Mineral Policy for Uganda 2018
ii. require licensees to equip nationals with skills and give priority to Ugandans in
recruitment and employment at all levels;
iii. collaborate with institutions of higher learning and set up new training institutions to
support the development of the mining industry;
iv. develop mechanisms for promoting Local Content Development
v. promote skills development, education, training and research and development in
the mining industry;
vi. promote state participation in the development of strategic minerals;
vii. require mining companies to procure goods and services available in Uganda and
sold by Ugandan owned entities and individuals at competitive prices and
acceptable quality; and
viii. require mining companies to enter into Community Development Agreements
(CDAs) with mining host communities.
ix. build the capacity and empower host mining communities to negotiate CDAs with
investors.
Strategy 10: promote regional and international cooperation in the development and
management of the mineral subsector
Key Actions:
Chapter 4
pg. 27
Draft Mining & Mineral Policy for Uganda 2018
This policy addresses a number of cross cutting issues such as of Environment,
Gender, Equity, Human Rights, Health and Safety Management, Land related issues
and climate change.
The mining sector shall coordinate with lead agencies to develop specific
environmental, health and safety legislative, regulatory frameworks and standards for
the mining sector and streamline it with the national Environment and other relevant
laws. Emphasis will be on environmental performance, ecological sensitivity, sites of
historical importance and conformity with internationally accepted standards on mine
health, safety and environment. The Policy and mining legislation will establish a clear
legal framework, procedures and obligations concerning rehabilitation at mine closure
by mining license and permit holders.
The mining industry in Uganda shall strive and adopt the principles of sustainable
development to maximize social and economic benefits without compromising
environmental sustainability for the benefit of present and future generations.
Uganda has a complex land tenure system enshrined in the Constitution of 1995 (as
Amended 2005). Mineral right holders are required to obtain consents from owner or
lawful occupier of land in which their operations are to be undertaken. However,
government plays no role in the negotiations of these consents between land owners
and exploration entities. Nonetheless, due to the high priority given to the mining and
extractive industry as a whole, the Ministry of Energy and Mineral Development, in
consultation with the Ministry responsible for Lands shall facilitate such negotiations
and address other community related issues for purposes of achieving and
maintaining harmony in the industry.
For mining purposes, access to land may entail compensation, relocation and
resettlement of the affected land owners and occupiers. As a result, the government
shall ensure prompt, just and adequate compensation to the affected persons. Where
relocation and resettlement are unavoidable, they will be done with due regard to basic
human rights, as enshrined in the Constitution, international standards and best
practices. These issues require multi-sectoral interventions and there shall be
concerted efforts to involve relevant institutions and all stakeholders.
pg. 28
Draft Mining & Mineral Policy for Uganda 2018
4.3 Gender, Equity and Child Labour
Women participation in mining activities is important in the socio-economic
development process. The Government has conducted awareness campaigns for
women to participate in mining activities and facilitated establishment of Women in
Mining Associations. However, women face economic and socio-cultural barriers which
restrict their effective involvement in mining activities, and as a result they receive
minimal benefits.
The Government in collaboration with civil societies and other stakeholders shall
improve education and awareness to small scale mining communities on the effect of
child labour as well as strengthen and enforce the law against the use of child labour.
Government shall ensure that mining activities shall be undertaken in ways that
minimize carbon emissions and other mining effects that have been deemed to cause
climate change, and ensure that emissions from the sector meet global climate change
guidelines and standards. Mining in forests and wetlands shall ensure conservation of
ecosystems and biodiversity.
Chapter 5
pg. 29
Draft Mining & Mineral Policy for Uganda 2018
5.1 International, Continental and Regional Dispensations
The development of the mineral policy of Uganda, 2018 has been informed by the
development goals/ agendas of the respective instruments and thus linked the
frameworks to ensure the achievement of the respective goals. E.g. the policy
underpins regional and international cooperation as critical for mineral subsector
development.
The Uganda vision 2040 provides the overarching framework of the country over forty
year period. The Vision envisages a transformed Ugandan society from a peasant to
a modern and prosperous country. As such in its development agenda, the vision
recognizes the Uganda’s favorable geological environments that host a wide range
and a variety of minerals which provide an opportunity to develop a strong mining
industry. Similarly the policy recognizes the Uganda Vision 2040 aspirations and seek
to provide frameworks to unlock the Uganda’s mineral wealth potential for social
economic development.
In line with vision 2040, the policy seek to develop the mining sector that can catalyse
agriculture as well as broad based growth and development of the down-stream
linkages into mineral beneficiation and manufacturing , up-stream linkages into mining
capital goods, consumables and services industries and side-stream linkages into
infrastructure such as power, logistics; communications, water and skills & technology
development .
The policy is aware of the aspiration of the NDP II, the five year plan framework which
operationalizes the vision 2040. The plan underscores six key minerals for exploitation
and value addition including: Iron ore, Limestone/Marble, copper/Cobalt, Phosphates,
Dimension stones and Uranium which are directly linked to industrialization,
infrastructure and energy utilization.
The Constitution of Uganda 1995 as amended 2005 provides and defines the mineral
wealth and emphasizes the need to ensure that all Ugandans maximally benefit from
the country’s mineral wealth. As such the policy has taken into account the
constitutional concerns to ensure inclusiveness by providing for main streaming of
human rights, gender and equity
The Mining and Minerals Policy (2018) seeks to enable the country obtain maximum
benefits from it’s the current and future mineral deposits by and mainstream social and
economic issues which are also cross cutting. These include: environmental
pg. 30
Draft Mining & Mineral Policy for Uganda 2018
management, climate change, gender, human rights, health and safety, which are
provided for under the different legislative frameworks e.g. the National Environment
Management Policy, 1994, the National Environmental Act Cap.153, Occupational
Safety and Health Act, 2006 among others. The Policy comprehensively addresses
the gaps that have existed in the mining sector with regard to the above and provides
a basis for review, enforcement and compliance
The policy is also cognizant and in alignment to other policies and sectoral legislative
frameworks including the Uganda National Land Policy, 2013; and the National
Forestry Policy, 2007; the National Forestry and Tree Planting Act, 300, Act No.8 of
2003; the Income Tax Act Cap. 340; the Land Act, Cap. 227; the Physical Planning
Act, 2010, Act No.8 of 2010; Act No.12 of 2006; the Water Act, Cap.152; the Uganda
Wildlife Act, Cap. 200; the Uganda, Investment Code Act, Cap. 92; and the Local
Government Act, Cap. 243. The policy is therefore coherent, relevant and consistent
with the existing policies and legal frameworks and ensures that the mineral sub sector
is integrated with other sectors of the economy.
pg. 31
Draft Mining & Mineral Policy for Uganda 2018
Chapter 6
The Ministry of Energy and Mineral Development has the main responsibility of
overseeing the implementation of this Policy. However, the actual implementation will
be the preserve of key sector stakeholders including private sector and the process
shall be guided by the implementation plan. Government shall put in place an inter-
sectoral Coordination Committee, appropriate institutional linkage mechanisms and
ensure inclusive participation through clearly defined roles and responsibilities.
The Government shall put in place an Inter-sectoral Coordination Committee that will
be chaired by the Permanent Secretary for the Ministry of Energy and Mineral
Development to ensure effective Policy implementation.
To achieve the goal, objectives and strategies outlined in this Policy and optimize benefits
from mineral wealth, it is pertinent to strengthen the current institutional arrangement and
establish relevant supporting institutions. Government will put in place comprehensive
institutions to facilitate investment, exploration, mining, value addition and trading in
mineral commodities and coordination of relevant key stakeholders ie MDAs, private
sector, development Partners and civil society and other non-state actors.
The Ministry responsible for mining shall undertake licensing of all mineral licenses and
permits through the Minister.
32
audit unit and a Mining Tribunal to carry out specific tasks as outlined below;
The Mineral Audit unit will be established to provide audit functions in the subsector and
will be charged with:
a) Auditing the assessment of taxes and royalties payable to Government from
minerals produced, processed and exported;
b) Counteract minerals smuggling, royalty evasion and illicit financial flows;
c) Carrying out audit of minerals produced and exported;
d) Auditing revenue distribution and management; and
e) Auditing capital investments and operating costs by mining companies.
Mining Tribunal
The role of the Mining Tribunal will be to arbitrate mineral and mining disputes.
33
Government Private Mining Company
The Role of the Government Private Mining Company will include:
ii. Hold mineral rights that are of strategic importance to the government of Uganda;
The role of the Ministry of Justice and Constitutional Affairs under this Policy shall be:
(a) providing a budget and other necessary funding for the implementation of this
policy;
(b) ensuring appropriate management of revenue from the mining industry;
(c) designing fiscal regimes and other fees and charges applicable to the mining
industry in consultation with the DGSM;
(d) promoting the financing of Ugandans to participate in the mineral sector; and
(e) monitoring and assessing the impact of mineral revenues on the economy.
34
6.3.3 Ministry Responsible for Works and Transport
The Ministry of Water and Environment has the responsibility for setting national policies
and standards, managing and regulating water resources and determining priorities for
water development and management.
The role of the Ministry of Water and Environment under this Policy shall include:
(a) setting national policies and standards for the management of water resources
and the environment;
(b) ensuring that mining activities conform to the requirements of the policies and
laws regulating the protection and utilization of water bodies and aquifers;
(c) monitoring the impact of mineral activities on the quality of surface and ground
water bodies;
(d) when undertaking borehole drilling activities, require drilling companies to avail
samples and drill logs to the DGSM;
(e) regulating water use and pollution load into water bodies through issuance
of water permits to exploration and mining companies;
(f) ensuring compliance with conditions stipulated in the water permits;
(g) ensuring protection of water catchment and drainage areas;
(h) ensuring respect of Uganda’s commitments towards cooperation frameworks
35
for basin wide trans-boundary water resource management;
(i) ensuring self-monitoring by the mining companies for compliance with
wastewater effluent standards together with ground and surface water quality
standards; and
(j) Participating in monitoring and management of mine waste or effluent
emergencies.
The role of the Ministry responsible for Tourism, Wildlife and Antiquities is to formulate
and implement policies, strategies, plans and programs that promote and protect
tourism, wildlife and cultural heritage conservation for socio-economic development
and transformation of Uganda.
The specific roles of this Ministry under this Policy shall include:
(a) formulating, implementing and monitoring policies, laws, plans, strategies and
standards related to tourism, wildlife and cultural heritage;
(b) ensuring that mineral related activities comply with wildlife conservation, cultural
heritage conservation and tourism policies and laws;
(c) in collaboration with relevant stakeholders, monitor the impact of mineral
activities on wildlife conservation, cultural heritage conservation and antiquities;
and
(d) ensuring harmonious coexistence between ecotourism and mineral related
activities.
6.3.6 The role of the Ministry Responsible for Gender, Labour and Social
Development
The Ministry of Gender, Labor and Social Development is responsible for the
implementation of policies related to Gender, Employment and Social Development.
The role of the Ministry of Gender, Labor and Social Development under this Policy shall
include:
(a) carrying out regular statutory and routine inspections to ensure Occupational
Safety and Health in the mining industry;
(b) ensuring that employment policies in the mineral sector are in line with Uganda’s
social safe guards, Occupational Safety and Health and labour policies , laws and
regulations;
36
(c) formulating and enforcing standards, regulations and guidelines on gender,
culture, social safe guards, labour, safety and health in the mineral sector;
(d) monitoring compensation for occupational injuries and diseases in the mineral
sector;
(e) mediating labour disputes and participating in conflict resolution;
(f) issuing guidelines on labour unions in the mineral sector;
(g) monitoring compliance with the gender, culture, social safe guards, Occupational
Safety and Health and labour standards;
(h) ensuring that exploration and mining equipment and technologies brought into the
country are environmentally friendly and comply with the desired safety and
health standards;
(i) ensuring that Occupational Safety and Health, labour, gender, cultural and equity
concerns are mainstreamed into all mining operations; and
(j) promote, disseminate and integrate the policy in the social sub sector plans and
programmes.
The role of the Ministry responsible for Education is to support, guide, coordinate and
promote quality education to all persons in Uganda for national integration, individual and
national development.
The role of the Ministry responsible for Education under this Policy shall include:
(a) developing education and training programmes in order to create requisite
national technical expertise and skills relevant to the mineral sector;
(b) promoting the relevant research and development in collaboration with the
Ministry responsible for mineral development and any other relevant institutions;
and
(c) Identifying and proposing measures to mitigate any adverse effects of mineral
related activities on education of children.
6.3.8 The role of the Ministry Responsible for Trade, Industry and
Cooperatives
The role of the Ministry responsible for Trade, Industry and Cooperatives is to formulate,
review and support policies, strategies, plans and programs that promote and ensure
expansion and diversification of trade, cooperatives, environmentally sustainable
industrialization, appropriate technology development and transfer to generate wealth for
poverty eradication and benefit the country socially and economically.
37
The roles of Ministry responsible for Trade, Industry and Cooperatives under this Policy
shall include:
(a) ensuring that mineral related activities are in harmony with the Government policy
on trade, industry and cooperatives; and
(b) promoting the development of industries that can add value to Uganda’s mineral
resources and products.
6.3.9 The role of the Ministry Responsible for Lands, Housing and Urban
Development
The Ministry responsible for Lands, Housing and Urban Development is mandated to put
in place policies and initiating laws for sustainable land use.
The Ministry responsible for Foreign Affairs is mandated to implement and manage
Uganda’s foreign policy.
The roles of the Ministry responsible for Foreign Affairs under this policy shall be:
(a) ensuring cordial relations with other countries in promoting the development
of Uganda’s mineral sector;
(b) coordinating regional and international initiatives, protocols and treaties
relevant to the mineral sector;
(c) coordinating joint exploration and exploitation of mineral resources along
Uganda’s borders;
38
6.3.11 The roles of the Ministry Responsible for Internal Affairs
The Ministry responsible for Internal Affairs is mandated to promote efficiency and
effectiveness in service delivery in peace, justice and security within Uganda.
The role of the Ministry responsible for Internal Affairs under this Policy shall be:
(a) coordinating the protection of life and property, preserving law and order and
preventing and detecting crime;
(b) issuing work permits to foreign expatriate employees;
(c) providing security at exploration and mining sites;
(d) regulating the manufacture, possession, use, sale, transport, import and export of
explosives used in mineral related activities; and
(e) facilitating and regulating the entry, stay and exit into and from Uganda, of
persons involved in mineral related activities.
6.3.12 The role of the Ministries Responsible for Defense and Security
The Ministries responsible for defense and security are mandated to defend and ensure
the security of Uganda.
Under this Policy, the Ministries shall ensure protection of mining activities and
installations against any external aggression and internal threats.
Specific roles of the Ministry responsible for Information and Communication Technology
under this Policy shall include:
39
Technology in order to enhance efficiency and effectiveness in mineral
operations and transactions.
The role of the Central Bank is to promote and maintain the stability of the currency of
Uganda, regulate the currency system in the interest of the economic stability,
encourage and promote the economic development and efficient utilization of the
resources of Uganda through effective and efficient operations of a banking and credit
system.
Specific roles of the Central Bank under this Policy shall include:
(a) advising Government on the impact of the mining industry on the national
economy; and
(b) ensuring that mineral activities do not impact negatively on monetary policy and
macroeconomic stability of Uganda.
The role of the Uganda Revenue Authority is to assess and collect specified revenue,
administer and enforce taxation laws and ensure tax compliance.
Specific roles of the Uganda Revenue Authority under this Policy shall include:
(a) Work with DGSM to collect revenue specified in the Mining Act; and
(b) Reporting on the collection of tax and non-tax revenue from the mineral subsector.
6.4.3 The role of the National Planning Authority.
The role of National Planning Authority (NPA) in this Policy shall be to ensure that the
Mineral Sector activities are integrated in the National Development Plans and
strategies, Budget, Medium Term Expenditure Framework and other National Planning
frameworks. In addition, the Authority shall study and publish independent
assessments of key economic and social issues and options to increase public
understanding and participation in mineral activities.
40
packaged investment projects; ensures local and foreign investors have access to
information, especially about the business environment so as to make more informed
business decisions; and offers business support, advisory and advocacy services.
The role of Uganda Investment Authority under this Policy shall include:
Specific roles of the National Environment Management Authority under this Policy shall
include:
The role of the National Forestry Authority is to manage central forest reserves on a
sustainable basis and to supply high quality forestry-related products and services to
41
government, local communities and the private sector.
Specific roles of the National Forestry Authority under this Policy shall include:
(a) ensuring that mining activities are carried out in compliance with forestry policies
and laws;
(b) collaborating with DGSM in the management of mining activities that fall within
forest reserves; and
(c) issuing consent for undertaking mineral operations in forest reserves.
The role of the Uganda Wildlife Authority is to conserve and manage Uganda’s wildlife.
The Authority is mandated to ensure sustainable management of wildlife resources and
supervise wildlife activities in Uganda both within and outside the protected areas.
The specific roles of Uganda Wildlife Authority under this Policy shall include:
(a) ensuring that mining activities are carried out in compliance with wildlife
conservation policies and laws;
(b) collaborating with DGSM in the management of mining activities that fall within
wildlife conservation areas;
(c) monitoring the impact of mineral activities on wildlife protected areas;
(d) participating in evaluation of Environmental Impact Assessments and
environmental audits for mineral activities; and
(e) issuing consent for undertaking mineral operations in wildlife protected areas.
The role of the Auditor General is to audit and report on the public accounts of Uganda
and to further conduct financial and Value for Money audits in respect of any project
involving public funds.
The specific roles of the Auditor General under this Policy shall include:
42
This Policy recognizes that Local Governments have a role to play in the processing
of mineral rights applications, working with other government departments to
implement development plans, capacity building and infrastructure development,
among other activities, in accordance with the Local Governments Act, Cap 243.
The role of the Local Governments under this Policy shall include:
(a) developing and implementing plans and programs that recognize mineral
activities;
(b) participating in the implementation of mining Policies, Laws and mineral related
activities;
(c) creating awareness on mining activities within their areas of jurisdiction;
(d) assisting the DGSM in the monitoring and inspection of mining activities within
their jurisdiction, where required;
(e) supporting mineral activities including provision of the necessary infrastructure
and facilitating dialogue between the local communities and mineral right
holders;
(f) participating in the resolution of disputes arising from mineral related activities;
and
(g) participating in the determination and payment of compensation related to
mineral development activities.
(h) license building minerals such as sand, clay and murram.
The private sector players including exploration and mining companies shall work with
Government in implementing this Policy as well as complying with the provisions of the
law and mineral development agreements or licenses relating to mineral rights. The
Private sector will also facilitate capacity building of Ugandan citizens, enterprises and
other entities in the mineral value chain through training, employment, supplier
development and research and development.
In line with best mining industry standards and practices, the specific role of the private
sector under this Policy shall include:
(a) efficiently carrying out exploration, development and exploitation of the
country’s mineral resources to contribute to economic growth and social
transformation of Uganda;
(b) complying with policies and laws existing in Uganda and managing
emergencies that may arise out of the mineral activities;
(c) incorporating Local Content in all their activities and operations;
43
(d) investing in business improvement and Health, Safety, Environment and
Quality to enhance competitiveness;
(e) promoting best employment practices and industry standards;
(f) creating non-state sponsored industry groups and collaboration forums to
improve knowledge and capabilities; and
(g) promoting and supporting technological advancement through research and
development.
The Uganda Chamber of Mines and Petroleum shall through the collective action of its
members, lobby, promote, encourage, protect and foster responsible exploration &
mining, to support the growth and development of Uganda's extractive sector for the
benefit of all Ugandans and investors.
The specific roles of the Uganda Chamber of Mines and Petroleum under this Policy
shall include:
(a) protecting and promoting the interests of its members by working closely with
the Government;
(b) collaborating with government to attract investment in the mineral sector;
(c) building capacity of its members by organizing training, workshops, seminars
and visits; and
(d) promoting networking among its members.
This policy recognizes the role Civil Society Organizations and Cultural Institutions can
play through advocacy, mobilization and dialogue with communities. The roles include:
(a) promoting transparency and accountability among mining industry players when
developing and implementing mining projects.
(b) Promoting advocacy, mobilization and dialogue with communities, licensed
companies and the Government on aspects related to mining.
(c) undertaking capacity building and training of local communities.
44
Chapter 7
7.1 Introduction
Under the Policy Implementation Plan, the main activities will be implemented within
the timeframes indicated as indicated in APPENDIX III. However, for the effective
implementation of the Policy, Government shall ensure that the following
implementation actions are taken:
In developing human resource the Government shall develop a holistic training strategy
involving other sectors and other institutional players such as universities and
specialized training institutions that offer mineral related training; encourage a
45
collaborative approach directed at building a broad range of required competences
needed in the mining sector; and foster partnerships between Government and mining
companies in providing training to Ugandan citizens in a wide-range of skills and
expertise needed in Government and private sector.
The effective implementation of this Policy requires the building and strengthening of
institutional capacity including geoscience data collection and management, mineral
exploration, mining tax administration and collection frameworks, governance, licensing,
regulation and enforcement, artisanal and small scale mining, and environmental
management. Some of the significant institutional changes affecting the implementation of
measures and strategies are in the following policy areas.
The institutional changes suggested above are not exhaustive. They, however, serve
to underscore the need to match policy reforms with institutional capacities and
competences.
46
47
Chapter 8
The Ministry of Energy and Mineral Development in liaison with the relevant
Ministries, Departments and Agencies (MDAs) and non-state actors shall be
responsible for the dissemination and awareness creation, including information,
education, communication and publication of the Policy to relevant stakeholders. In
addition, it will enhance dialogue, buy-in, collaboration and participation of
stakeholders in the Policy implementation process. In popularizing this Policy, the
Ministry will use both the electronic, print media and other means that will ensure the
Policy reaches a wide section of the Ugandan public. Other activities in this regard
shall include publication and launch of the Policy, development and distribution of a
popular version in English and local languages and holding outreach dialogue
meetings with MDAs, Local Governments, Private Sector Organizations, CSOs,
Academia among others. The Policy will also be uploaded on the Ministry’s website
to ensure wider outreach. The communication mechanism will be developed in line
with the Sector and the Government Communication Strategy.
In consideration of the fast growth of the mineral sector and its challenges,
Government shall put in place appropriate communication and feed back mechanisms
in electronic, print media and other relevant means to ensure appropriate feedback.
The Government will collaborate with all its stakeholders to improve communication
systems and flow of information to and from the general public.
48
Chapter 9
9.1 Introduction
Implementation of the Policy will require substantial resources to cater for the financial,
institutional, human resource and infrastructure requirements. These resources will be
raised through the following sources:
(a) Annual budgetary allocations by the government;
(b) Funds mobilized through Public and Private Partnership (PPP) arrangements;
and
(c) Loans and grants from Development Partners, especially for activities which
require substantial financial resources such as airborne geo-physical surveys;
implementation of mineral certification mechanism; review and establishment
of appropriate legislation; establishment of a framework for value-
added processing; Uranium and Rare Earth Elements/minerals Exploration;
Laboratories Infrastructure Enhancement; mainstreaming artisanal and small
scale mining and promotion of geo-tourism.
(a) cost and finance the minerals sector reform process in Uganda as approved
in this Policy;
(b) phase the implementation of this policy based on sequenced priorities and
develop cost estimates for all phased activities or programs anticipated by the
policy;
(c) make an inventory of existing resource capacity in the mining industry to
determine usability and level of short-fall in the implementation of the policy;
(d) strengthen existing systems and structures to ensure they are effective and
efficient in the implementation of this Policy and to eliminate duplication and
overlaps among relevant Government agencies; and
(e) ensure that the cost of implementation of the policy is fully budgeted for and
funded as part of the national development framework.
This Policy recognizes that there are a number of financing mechanisms and funding
49
sources which may be considered to fund the implementation of the activities in this
Policy. These mechanisms include: funding from Government, donor funding and
private sector. The maintenance of the Directorate of Geological Survey and Mines in
the Ministry responsible for Energy and Mineral Development matters will be financed
under the budget of the Ministry responsible for Energy and Mineral Development.
The Policy also recommends creation of a Local Content Development Fund in the
mineral sector. The Fund will be used for Skills Development (education, training and
Research and Development) and Enterprise development. The sources of this Fund
will include funding from Government, donor funding and private sector, levies, grants
and any other additional support. The Ministry responsible for mineral development will
oversee the disbursement of the monies from the Fund.
The policy recognizes that monitoring and implementing mining activities will introduce
additional roles to the different Ministries, Departments and Agencies. The Ministry
responsible for Finance, Planning and Economic Development will evaluate the need for
additional resources required to carry out these roles and provide the necessary
funding as considered appropriate.
The policy provides for the review of the Mining Act, No.9 of 2003, land laws, National
Environment Act Cap. 150, and other relevant laws to appropriately regulate the
activities in the mining industry. It also provides for the enactment mining legislation to
regulate health and safety in the mining industry. The additional legislative reforms that
this policy seeks to introduce shall include the regulation of mineral value addition,
artisanal and small scale mining, certification and traceability of minerals in the value
chain; mine occupational health and safety; dangerous goods and substances;
Environmental Protection for Small Scale Mining; and development of model mineral
development and community agreements. Putting in place these legislation together
with their attendant regulations will require that the necessary funding is made available.
50
of mineral exploitation and promotion of value addition in the country will require
putting in place the necessary infrastructure like mineral laboratories, appropriate
facilities and equipment, smelters, processing plants, and others. Financing this
infrastructure will be undertaken by Government, donor funding and private sector.
Public Private Partnerships (PPP) shall also be used to put in place some of the
required infrastructure. The private sector will also participate in financing the
development of social infrastructure especially in the areas where the mining companies
are undertaking mining operations.
The Policy will be constantly monitored under the overall Monitoring and Evaluation
framework for the mineral sector and progress reports evaluating its implementation
produced on a regular basis. Such a process will facilitate achievement of the intended
policy goals and objectives. The mineral sector is evolutionary in nature and is
affected by new developments emerging locally, regionally, or internationally. The
Policy will thus be reviewed every five years to ensure that it remains relevant and
conforms to the prevalent best practices in the industry.
51
Public Sector
Ministry of Energy and Mineral Mr. Robert Kasande (Permanent Secretary (Chairman); Dr.
Development F. A. Kabagambe-Kaliisa, Mr. Edwards Katto, Director of
Geological Survey and Mines (Co-Chairman), Eng. Joseph
P. Okedi, Ag. Assistant Commissioner Mines (Coordinator);
Mr. Zachary Baguma, Assistant Commissioner (Geology);
Godfrey Bahati Acting Commissioner (Geothermal
Resources), Mr. Chris Rudigizah, Ag. Assistant
Commissioner Mines (License Administration); Ms. Agnes
Alaba, Assistant Commissioner (Geodata); Grace
Nassuna, Assistant Commissioner Mines (Geosciences);
Chris Lubangakene, Ag. Assistant Commissioner
(Labaratories); Mr. Vincent Kedi, Principal Engineer
(Mining) (Secretary); James Francis Natukunda, Principal
Geologist (Mapping); Mr. Gabriel Data, Principal Geologist
(Exploration); Ms. Faridah Nakayiza Nsanja, Senior Legal
Officer; Dr. Joseph Kobusheshe, Ag. Head HSE; Mr.
Mayanja Jackson, Mining Engineer.
Ministry of Lands, Housing & Urban Mr. Gilbert Kermundu,Assistant Commissioner (Valuation).
Development Ms. Naome Kabanda, Ag. Assistant Commissioner (Land
Inspection)
Ministry of Justice and Constitutional Mr. John Paul Edoku, Senior State Attorney. Ms. Nancy
Affairs Awori, Senior State Attorney.
Ms. Sheila Ampeire, State Attorney.
Parliamentary Commission and Cabinet Ms. Kobere Betty Nayah, Senior Research Officer
Secretariat. (Parliamentary Commission); Rose Mary Waya and
Gertrude Namayanja (Cabinet Secretariat).
Private Sector & Professional Associations
Uganda Law Society Mr. Joshua Ogwal, Partner, Ligomarc.
Uganda Chamber of Mines and Ms. Ivy Irene Nakalyango, CEO, UCMP
Petroleum Mr. Nicholas Ecimu, Partner at Sebalu & Lule Advocates
52
APPENDIX II: POLICY IMPLEMENTATION PLAN
5. Review and/or development of new legislation if any, review of existing MEMD/DGSM Ministry on Vote 0305 2017/18 – 2019/20
legislation and institutional arrangements in line with the Mining and
Mineral Policy. MEMD/DGSM Ministry on Vote 0305 2017/18 - Onwards
6. Implement the regional mineral certification mechanism.
7. Review, develop and disseminate: MEMD/DGSM Ministry on Vote 0305
a. The Mining and Mineral Trading Regulations. MEMD/DGSM Ministry on Vote 0305 2017/18 - 2018/19
b. The Mining (Environmental Management for Small Scale Mining) MEMD/DGSM Ministry on Vote 0305 2017/18 - 2018/19
Regulations.
c. The Mining (Occupational Health and Safety) Regulations. MEMD/DGSM Ministry on Vote 0305 2017/18 - 2018/19
d. The Mining (Dangerous Goods) Regulations. MEMD/DGSM Ministry on Vote 0305 2017/18 - 2018/19
e. The Mining (Mineral Processing) Regulations. MEMD/DGSM Ministry on Vote 0305 2017/18 - 2018/19
f. The Mining (Mineral certification) Regulation. MEMD/DGSM Ministry on Vote 0305 2017/18 - 2018/19
g. The Mining Development Agreement Model and Mineral Production MEMD/DGSM Ministry on Vote 0305 2017/18 - 2018/19
Sharing Agreement
h. The Mining (Salt production and Iodation) Regulations. MEMD/DGSM Ministry on Vote 0305 2018/19 - 2019/20
i. Guidelines barring investors from blasting rocks that are connected to MEMD/DGSM, Ministry on Vote 0305 2017/18
ecological systems and those with historical relevance. MIA, UWA, NFA
j. Issue building guidelines to enable structures to withstand earthquakes MEMD/DGSM Ministry on Vote 0305 2017/18
8. Regulate the commercial exploitation of substances excluded from the MEMD/DGSM Ministry on Vote 0305 2017/18
definition of mineral in article 244 (5) of the Constitution, 1995. These
substances include clay, murram, sand or any stone commonly used for
building or similar purposes. MEMD/DGSM Ministry on Vote 0305 2017/18- 2019/20
9. Establish a transparent and competitive licensing regime;
10. Implement a well-developed mining cadastre and registry system MEMD/DGSM Ministry on Vote 0305 2017/18- Onwards
11. Establish an enabling institutional framework for the mineral sector: MEMD/DGSM Ministry on Vote 0305 2017/18- 2019/20
a. Build capacity of existing staff MEMD/DGSM Ministry on Vote 0305 2017/18- Onwards
b. Recruit new staff MEMD/DGSM, Ministry on Vote 0305 2017/18- 2019/20
MPS
c. Hire international consultants for short term MEMD/DGSM, Ministry on Vote 0305 2017/18- Onwards
MoFPED, MIA
d. Assess the current capacity of DGSM in policy development MEMD/DGSM, Ministry on Vote 0305 2017/18- 2018/19
MPS, MoFPED
e. Strengthen DGSM capacity in policy formulation MEMD/DGSM, Ministry on Vote 0305 2017/18- 2018/19
MPS, MoFPED
12. Collect and maintain geo-technical data and information for promotional MEMD/DGSM, Ministry on Vote 0305 2017/18- 2019/20
purposes. UCMP.
13. Put in place an enabling and competitive Fiscal Regime for the mineral MEMD/DGSM, Ministry on Vote 0305 2017/18- 2018/19
sector. Revise royalty, Develop an action plan for the mineral MoFPED, URA,
UIA
development fund, Create hedging instruments, Improve price
information and forecasts, etc
14. Implement a strategy for promotion of value addition and marketing for MEMD/DGSM Ministry on Vote 0305 2017/18 - Onwards
minerals. MEMD/DGSM, Ministry on Vote 0305 2017/18 - 2019/20
15. Establish an enabling framework for Artisanal and Small Scale Mining.
CSO, Local
Governments
16. Establish a framework for equitable sharing of mining benefits. MEMD/DGSM Ministry on Vote 0305 2017/18 - 2018/19
17. Development and establishment of a framework for local equity MEMD/DGSM Ministry on Vote 0305 2017/18 - Onwards
participation in mineral investments.
18. Establish mechanisms to strengthen inter-sector coordination for the MEMD/DGSM Ministry on Vote 0305 2017/18- Onwards
implementation of the policy
Ministry of Energy and Mineral
Development
P.O. Box 7270, Kampala, Uganda.
Tel: +256 414 344414, +256 414
234733
E-Mail: psmemd@energy.go.ug